Bulletin: Tacala LLC's Term Loan Repricing Is Slightly Positive To Cash Flow

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Sept. 11, 2025--S&P Global Ratings today said Taco Bell restaurant operator Tacala LLC ?s proposed repricing of its first-lien term loan will be slightly positive to cash flow if completed successfully. We expect Tacala to generate positive free operating cash flow and we continue to expect leverage will remain high due to its strategy of using debt to fund shareholder returns. The transaction is leverage neutral, and the debt structure remains all first-lien. Our ?B-? long-term issuer-credit rating and stable outlook on Tacala are unaffected. Additionally, our ?B-? rating and ?3? recovery rating on its first-lien debt are unchanged. We expect Taco Bell franchises to continue to

...September 11, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Sept. 11, 2025--S&P Global Ratings today said Taco Bell restaurant operator Tacala LLC's proposed repricing of its first-lien term loan will be slightly positive to cash flow if completed successfully. We expect Tacala to generate positive free operating cash flow and we continue to expect leverage will remain high due to its strategy of using debt to fund shareholder returns. The transaction is leverage neutral, and the debt structure remains all first-lien. Our `B-' long-term issuer-credit rating and stable outlook on Tacala are unaffected. Additionally, our `B-' rating and `3' recovery rating on its first-lien debt are unchanged. We expect Taco Bell franchises to continue to outperform the overall quick-service restaurant industry and deliver high restaurant-level margins. The brand's promotion of chicken and steak products has helped offset some of the pressure from ground beef prices,...

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